Beijing's long-time ally might be redirecting its attention to the West.
Myanmar's new civilian president, Thein Sein, stands next to Chinese President Hu during a signing ceremony in Beijing. / Reuters
Last October, Secretary of State Hillary Clinton gave a speech to the New York Economic Club. She spoke on the need for the United States to improve its statecraft by using economic policy to enhance its diplomatic leverage abroad. The speech was delivered in the context of widespread concern inside the State Department that Beijing's economic and aid policies have proven more effective than the muddle-through approaches of Western democracies.
From a distance, authoritarian great powers appear far more efficient at harnessing economic tools for strategic advantage. But recent developments in Burma suggest that Beijing's statecraft may not be as effective as has been suggested.
Burma remains the most ostracized country in Asia outside North Korea. Since the junta's brutal crackdown of protesters in 1988, the United States and the European Union have imposed increasingly robust economic sanctions against the regime. China also faced international condemnation over the repression of demonstrators following the 1989 Tiananmen protests, and since the 1990s, Beijing has emerged as Rangoon's most dependable ally.
Rangoon seems willing to take shelter under Beijing's embrace: China is behind two-thirds of all foreign investment in Burma and is its second-largest trading partner after Thailand. China is the primary supplier of military equipment to the Tatmadaw, Myanmar's armed forces. Beijing provides diplomatic and political cover for the regime, consistently vetoing U.S. plans to investigate allegations of civilian repression through UN agencies. Without Chinese economic and technical assistance, the stuttering Burmese economy would have completely collapsed, endangering the continued rule of the junta. It is no wonder that Burma is sometimes dismissed as a Chinese "economic colony" or even as the unofficial twenty-third province of China.
When President Thein Sein took office last March, few expected much change from the emergence of a so-called civilian government. But the last few months in Burma have taken the region and America by surprise.
The president suspended the $3.6 billion Chinese-funded Myitsone Dam project on the northern mouth of the Irawaddy River. The dam was to send 90 percent of the hydroelectric power generated to Yunnan Province in China for the next fifty years.
In an unexpected move, Rangoon has welcomed several senior American officials over the past few months. These include Secretary of State Hillary Clinton, former presidential candidate John McCain, former vice-presidential candidate Joe Lieberman and Senate Minority Leader Mitch McConnell. All have returned expressing cautious optimism about the prospect of political reform in Burma.
Clinton was even granted an audience with Nobel Peace Prize-winner Aung San Suu Kyi, who is considered by the West to be the legitimate leader of Burma on account of her election victory in 1990. Rangoon has approved meetings between Suu Kyi, Thai prime minister Yingluck Shinawatra and British foreign secretary William Hague. Released from house arrest in 2010, she was recently cleared to run for parliamentary elections in April 2012.